Asking for a Raise

Fundamentally, there are three major hurdles to getting a raise in pay. The first has to do with equity, meaning you must deserve to be paid more money. Second, you need to ask for a raise because most bosses don't voluntarily give them away. Finally, someone has to agree to grant you an increase in pay.

In this publication, we're going to address the topic of asking for a raise in pay. As part of that discussion, we'll first talk about the planning you should do before asking for a raise. Next, we'll talk about creating a win-win approach when meeting with your manager. Finally, we'll run through some tips that should help increase your chances of getting that raise.

Getting a Raise

Additional Resources

If you really want a raise in pay, then you're going to have to work for it. This includes planning the exact approach and information you're going to collect before meeting with your manager. The first item we're going to address is the equity hurdle, which is convincing someone that you deserve more money. Two strategies we'll use for proving your worth include:

Compensation Benchmarks
Performance Documentation

It's important to keep detailed documentation of your findings for both of the above items. When you meet with your manager to discuss getting a raise, you'll want to have the data available to backup your claims.

Compensation Benchmarks

One of the easier ways to benchmark the compensation of your position is by tracking the values placed on job openings within your own organization. For example, if you have an internal job posting board, then you can record both the pay offered as well as the requirements of those positions. This information can then be compared to the job requirements of the position you hold, as well as your compensation.

You can also consult with internal support personnel in your Human Resources department. They should be able to tell you what the pay scale is for jobs that are similar to yours. If you want to conduct your own research, then two valuable online resources include:

Bureau of Labor Statistics - conducts a National Compensation Survey which provides comprehensive measures of wages, employment costs and benefits.
Salary.com - a free online salary wizard that provides users with base salary, bonus, and benefits information for similar positions in your geographic region of the country.

We mention this step first because it's an important one. If you find that you're already being fairly compensated, then you might want to consider abandoning the notion of asking for a raise. But if you find that you're not being fairly compensated, then it's time to document your findings and continue to the next step in this process.

Performance Documentation

While the compensation benchmark information can be used to prove the worth of your job, this doesn't mean that you bring that value to your organization. If you've recently been hired into the company, then you probably don't have a long record of accomplishments or a long list of achievements. If that's true, then your probability of success is greatly diminished.

The goal of this step is to demonstrate that you've provided your organization with above-average value. If you have a performance management system, then your "exceeds expectations," "exceptional," or "above average" grade should be used as one piece of evidence that you're a valuable member of your company.

You also need to document your accomplishments over the last 24 months. Ideally, this would be a bulleted list of achievements that can be printed out and presented to your manager during your compensation meeting. Be specific, and use a great deal of care preparing this list, just as you would if you were writing a resume or preparing for a job interview.

If possible, performance documentation should include examples demonstrating your commitment to the company. Perfect attendance, evening training / classes aimed at acquiring new skills or improving existing skills are just a few examples that demonstrate you're a solid member of the department's team.

Negotiating a Raise

The best time to talk about getting a raise is immediately after your boss has praised you for doing an excellent job on a recent assignment. It's best to schedule a meeting to hold the discussion rather than having a hallway conversation. Remember, you have to prepare your compensation benchmark and performance documents before discussing compensation.

The tone you'll want to set during the meeting is one of win-win. You can achieve this by demonstrating your value to the company. This objective is accomplished by using facts about your compensation relative to the marketplace, and the above-average performance level at which you're operating. During the conversation, you'll want to use phrases as you would during an interview. Emphasis should be on first person singular statements such as "I accomplished this objective..." or "I played a critical role in the success of..."

Don't be vague during the meeting and make the mistake of saying something like "I think I deserve a raise." It's more effective to say something like "I've been doing some research, and based on the information I've found, the data indicates I'm underpaid."

Unless you have another job offer, it's never a good idea to go into a meeting and put your manager on the spot by making a demand for more money. The purpose of the meeting is to negotiate and that's best accomplished by reviewing the facts you've found, and letting your boss draw his or her own conclusion first. At that point, you need to be prepared to negotiate.

Tips for Getting a Raise

We're going to finish up with a quick review of some tips that will help to maximize your chances of successfully asking for, and getting, a raise.

Timing - as mentioned earlier, the best time to ask for a raise is immediately after being praised for a significant accomplishment. The worst time is right after you've been hired or received a raise. And while anything is possible, trying to negotiate a raise during a recession will always be a particularly difficult task.
Negotiations - always negotiate with a win-win outcome in mind. If you're the only winner in the short term, it's very likely your boss will win over the long haul.
Emotions - when discussing a raise, leave your emotions at the door. Getting emotionally involved in a discussion usually leads to making statements you'll later regret. You also lose your ability to communicate effectively when you get upset.
Backup Plan - always have a backup plan in case your boss doesn't agree to give you a raise. One effective follow-up question after an unsuccessful request is "What do I need to do to convince you I deserve this raise?"
Personal Finances - don't bring your personal finances into the discussion. It's not your company's fault that you cannot afford your mortgage; you can always downsize or sell your home. Stick to the facts about your value to the company, don't play the sympathy card.

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